Breaking News
Get Actionable Insights with InvestingPro+: Start 7 Day FREE Trial Register here
Investing Pro 0
Ad-Free Version. Upgrade your Investing.com experience. Save up to 40% More details

UK mortgages hit 6-month high as housing market stays hot

Economic Indicators Mar 01, 2022 10:12
Saved. See Saved Items.
This article has already been saved in your Saved Items
 
2/2 © Reuters. FILE PHOTO: New residential homes are seen at a housing estate in Aylesbury, Britain, February 7, 2017. REUTERS/Eddie Keogh/File Photo 2/2

LONDON (Reuters) -Mortgage approvals in Britain struck a six-month high in January, according to official data on Tuesday that showed demand in the housing market remained strong despite the end of pandemic emergency support measures.

The Bank of England said lenders approved 73,992 mortgages, up from 71,219 in December. A Reuters poll of economists had pointed to 72,000 approvals.

The housing market has been hot in Britain - and many other countries around the world - since the lifting of the first coronavirus lockdown in 2020, boosted by demand for bigger properties as more people worked from home.

The British market was also stoked by a tax incentive offered by finance minister Rishi Sunak which fully expired at the end of September, when a jobs support programme also lapsed.

The BoE figures showed the value of mortgage lending - which follows mortgage approvals - rose in net terms by 5.92 billion pounds ($7.95 billion) in January, the biggest increase since September.

Consumer credit growth was weaker than expected at 608 million pounds, compared with the Reuters poll forecast for net lending of 1.05 billion pounds.

Despite a tough backdrop for the economy, with household budgets squeezed by soaring inflation and tax increases, analysts think the housing market will maintain some of its strength this year.

A Reuters poll last week pointed to house price growth this year of 4.0% and 3.0% next year, driven by a lack of homes coming to the market relative to demand. [GB/HOMES]

($1 = 0.7451 pounds)

UK mortgages hit 6-month high as housing market stays hot
 

Related Articles

Add a Comment

Comment Guidelines

We encourage you to use comments to engage with users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind: 

  • Enrich the conversation
  • Stay focused and on track. Only post material that’s relevant to the topic being discussed.
  • Be respectful. Even negative opinions can be framed positively and diplomatically.
  •  Use standard writing style. Include punctuation and upper and lower cases.
  • NOTE: Spam and/or promotional messages and links within a comment will be removed
  • Avoid profanity, slander or personal attacks directed at an author or another user.
  • Don’t Monopolize the Conversation. We appreciate passion and conviction, but we also believe strongly in giving everyone a chance to air their thoughts. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
  • Only English comments will be allowed.

Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.

Write your thoughts here
 
Are you sure you want to delete this chart?
 
Post
Post also to:
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Thanks for your comment. Please note that all comments are pending until approved by our moderators. It may therefore take some time before it appears on our website.
 
Are you sure you want to delete this chart?
 
Post
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Add Chart to Comment
Confirm Block

Are you sure you want to block %USER_NAME%?

By doing so, you and %USER_NAME% will not be able to see any of each other's Investing.com's posts.

%USER_NAME% was successfully added to your Block List

Since you’ve just unblocked this person, you must wait 48 hours before renewing the block.

Report this comment

I feel that this comment is:

Comment flagged

Thank You!

Your report has been sent to our moderators for review
Continue with Google
or
Sign up with Email